§431:10H-221  Requirements for application
forms and replacement coverage.  (a)  Application forms shall include
questions designed to elicit information as to whether, as of the date of
application, the applicant has another long-term care insurance policy or
certificate in force or whether a long-term care policy or certificate is
intended to replace any other accident and health or sickness or long-term care
policy or certificate presently in force.  A supplementary application or other
form to be signed by the applicant and producer, except where the coverage is
sold without a producer, containing the questions may be used.  With regard to
a replacement policy issued to a group defined by paragraph (1) under the
definition of "group long-term care insurance" in section
431:10H-104, the following questions may be modified only to the extent
necessary to elicit information about accident and health or sickness and
long-term care insurance policies other than the group policy being replaced;
provided that the certificate holder has been notified of the replacement:



(1)  Do you have another long-term care insurance
policy or certificate in force (including a health care service contract or
health maintenance organization contract)?



(2)  Did you have another long-term care insurance
policy or certificate in force during the last twelve months?



(A)  If so, with which company?



(B)  If that policy lapsed, when did it lapse?



(3)  Are you covered by medicaid?



(4)  Do you intend to replace any of your medical or
accident and health or sickness insurance coverage with this policy
(certificate)?



(b)  Producers shall list any other accident
and health or sickness insurance policies they have sold to the applicant, and
the producer shall list policies sold that are still in force and list policies
sold in the past five years that are no longer in force.



(c)  Upon determining that a sale will involve
replacement, an insurer, other than an insurer using direct response
solicitation methods, or its producer, shall furnish the applicant, prior to
issuance or delivery of the individual long-term care insurance policy, a
notice regarding replacement of accident and health or sickness or long-term
care coverage.  One copy of the notice shall be retained by the applicant and an
additional copy signed by the applicant shall be retained by the insurer.  The
required notice shall be provided in the same manner as shown in section 14C of
the April, 2002, NAIC Long-Term Care Insurance Model Regulation.



(d)  Insurers using direct response
solicitation methods shall deliver a notice regarding replacement of accident
and health or sickness or long-term care coverage to the applicant upon
issuance of the policy.  The required notice shall be provided in the same
manner as shown in section 14D of the April, 2002, NAIC Long-Term Care
Insurance Model Regulation.



(e)  Where replacement is intended, the
replacing insurer shall notify, in writing, the existing insurer of the
proposed replacement.  The existing policy shall be identified by the insurer,
name of the insured, and policy number or address including zip code.  Notice
shall be made within five working days from the date the application is
received by the insurer or the date the policy is issued, whichever is sooner.



(f)  Life insurance policies that accelerate
benefits for long-term care shall comply with this section if the policy being
replaced is a long-term care insurance policy.  If the policy being replaced is
a life insurance policy, the insurer shall comply with the replacement
requirements for life insurance policies.  If a life insurance policy that
accelerates benefits for long-term care is replaced by another policy, the
replacing insurer shall comply with both the long-term care and the life
insurance replacement requirements. [L 1999, c 93, pt of §2; am L 2001, c 216,
§21; am L 2003, c 212, §97; am L 2007, c 233, §16]